5th March 2010
Politicians should consider imposing VAT on food, children's clothes and household gas and electricity, a report from a think-tank suggests.
Eliminating the exemptions on VAT would make the levy a less complex tax and bring the UK in line with other nations, according to Reform.
The right-leaning think-tank also questioned the structure, simplicity and certainty of the tax system.
Between 50% and 60% of what the average household buys includes a VAT levy.
VAT returned to 17.5% in the New Year after being reduced to 15% on 1 December 2008.